In a 5 – 4 decision, the Supreme Court has ruled that it is constitutional for states to offer tax credits in exchange for donations funding private school scholarships. From the Associated Press:
The Supreme Court rejected a challenge Monday to an Arizona tax break that directs millions of dollars to private religious schools.
The justices, in a 5-4 ruling, said that Arizona taxpayers who filed a lawsuit to block the tax break have no legal claim because they are not forced to contribute to the state program that sends money to the religious schools. …
The major complaint about the law has been that state money has wound up in the coffers of religious schools.
But Kennedy rejected the idea that the money at issue belongs to the state. “Contributions result from the decisions of private taxpayers regarding their own funds,” he said.
The taxpayers who object to the program have an insufficient connection to the money involved to take their complaint to federal court, Kennedy said. The Obama administration argued aggressively for the outcome the court reached Monday.
Right now, Gov. Chris Christie is fighting to institute a similar program in New Jersey, although it would be businesses getting the tax credits (and making the donations), not individuals. Currently, there are seven states offering some type of tax credit program to help students attend private schools.